3 MIN · A 3-minute read · Updated 30 October 2026
THE 10-SECOND VERSION
A SARON mortgage is cheap today but moves with the SNB; a fixed mortgage costs more now but buys certainty, and the biggest saving is often in shopping around.
WHAT'S HAPPENING
Swiss homeowners choose between two main mortgage types.
A SARON mortgage charges the Swiss Average Rate Overnight plus a bank margin, usually reset every three months. SARON tracks the SNB policy rate, now 0%, and stood at -0.05% at the 29 October fixing. Your cost today is essentially the bank's margin, but it rises when the SNB hikes.
A fixed-rate mortgage locks a rate for two to fifteen years. It follows the CHF swap market, which prices in where rates are expected to go. According to RealAdvisor, average published rates on 30 October 2026 were 1.60% for two years, 1.77% for five years and 1.93% for ten years. On 1 October the ten-year average had been 2.07%.
Why did fixed rates jump in September? The Resolve Q3 report points to rising 10-year swap rates, driven by ECB and Fed tightening, as "the market now anticipates a normalisation of policy by the SNB". Rates have since eased: Bilanz reported the hypotheke.ch index fell from a 1.77% peak on 29 September to 1.64%.
The number many borrowers miss is the gap between lenders. Resolve found 98 basis points between the best (1.46%) and the least competitive (2.44%) 10-year offer in Q3. On a CHF 750,000 mortgage, half a percentage point is about CHF 3,750 a year in interest.
Demand is subdued. Resolve counted 21,516 new loans worth CHF 19.77 billion in Q3, down 4.0% in number year on year, citing a shortage of properties and a wait-and-see mood.
THE NUMBER
1.93%
Average published 10-year fixed rate, 30 Oct 2026 (RealAdvisor). This is an average of published rates, not what every borrower pays. Strong borrowers with low loan-to-value often negotiate below the published average; others pay more. Treat it as a reference point for your own negotiations, not a quote.
WHAT IT MEANS FOR YOUR FRANCS
SARON fits borrowers who can absorb higher payments if the SNB moves off zero. Some lenders offer caps for a fee.
Fixed fits those who need a predictable budget. You pay for that certainty, and leaving early can trigger a penalty.
Compare widely: banks, insurers and pension funds all lend. Many allow a forward fixing months ahead of renewal. Affordability is tested at an imputed rate well above market rates either way.
3 TERMS IN 30 SECONDS
Swap rate: The market rate for swapping a floating rate against a fixed one. Banks use it to price fixed mortgages.
Forward fixing: Locking a fixed rate today for a mortgage that starts later, usually for a surcharge.
Imputed rate: A notional, higher interest rate banks use to check whether you could afford the home if rates rose.
WHAT TO WATCH NEXT
The SNB decision in December: a hike would hit SARON borrowers directly.
Swiss inflation data from the FSO.
ECB and Fed decisions, which have driven CHF swap rates this year.
Published averages on RealAdvisor and other trackers.
THE 3-MINUTE TAKEAWAY
There is no universally right answer, only a trade-off between cost today and certainty tomorrow. SARON is cheapest while the SNB sits at zero; fixed rates insure you against a hike but already price some of it in. Whatever you choose, the spread between lenders, nearly one percentage point in the third quarter, is the lever you control most directly.
GO DEEPER
More explainers like this: The 3-Minute Franc. Everything you need to know about your francs, 3 minutes each.
General information only, not investment, tax or legal advice, and not a recommendation to buy or sell any financial instrument. Figures come from the sources linked above and are preliminary. Independent; not affiliated with any exchange or authority.
Allgemeine Information, keine Anlageberatung. · Information générale, pas un conseil en placement. · Informazione generale, non consulenza in investimenti.